Press Release

Owens & Minor Previews 2017 Preliminary Financial Results

Owens & Minor revises expectations for 2017 earnings and revenues

OMI's Board approves 1% increase in the first quarter 2018 dividend

RICHMOND, Va.--(BUSINESS WIRE)--
Owens
& Minor, Inc. (NYSE: OMI) today released preliminary financial
results for 2017, which reflect the impact of a challenging operating
environment, as well as the estimated benefit from new tax legislation.
Owens & Minor expects that net income per diluted share will be in a
range $1.17 to $1.20 for the year ended December 31, 2017. The company
estimates that non-GAAP adjusted net income per diluted share for the
period will be in a range of $1.58 to $1.61, excluding an estimated
benefit of $0.55 to $0.60 from recently enacted tax reform legislation.
The company also believes that annual revenues will be in a range of
$9.20 billion to $9.32 billion. The company's prior 2017 outlook for
non-GAAP adjusted net income per diluted share was a range of $1.75 to
$1.85, which did not reflect a benefit from recently enacted tax reform
legislation.

While the company remains focused on executing the transformation
strategy it launched in 2017, a number of factors continue to affect
overall performance. Performance during the fourth quarter of 2017 was
affected by increased price and margin compression, longer than expected
sales cycles for the company's fee-for-service businesses, and, more
recently, product supply issues with certain larger manufacturers. In
the Domestic Segment, price and margin compression affected revenue and
gross margin results, which were only partially offset by transformation
and expense reduction initiatives. In addition, during the fourth
quarter, the Domestic Segment incurred higher than expected healthcare
costs and LIFO expense. The International Segment lagged expectations
mainly due to softer than expected fee-for-service revenues, increased
costs to onboard new customers, and a lag in implementing cost reduction
activities. Additionally, in the Proprietary Products Segment, lower
revenues and inventory write-offs negatively impacted the results.
Somewhat offsetting these results, were solid fourth quarter
contributions from Byram Healthcare, which was acquired in August of
2017.

"We are disappointed with our results for 2017 and the fourth quarter,"
said P. Cody Phipps, chairman, president & chief executive officer of
Owens & Minor. "We remain focused on executing our strategy to position
Owens & Minor for profitable growth, and we have already identified
actions that we believe will enable us to address the 2017
underperformance. The business transformation we launched in 2017 is
providing ongoing positive results, but headwinds in our business and
changes in the competitive environment are outpacing gains from our
transformation initiatives. Equally important is the strategic
repositioning of the company with last year's Byram Healthcare
acquisition and the pending Halyard Healthcare S&IP acquisition, which
represent necessary and significant moves to strengthen and diversify
our business model. I'm pleased with the performance of our Byram
Healthcare business, and we expect to see solid results in 2018. The
pre-closing activities associated with the Halyard Health S&IP
acquisition are proceeding as planned, and we now expect the acquisition
to close on or about April 1, 2018."

Owens & Minor Board Approves First Quarter 2018
Dividend Payment

The company also announced that the Board of Directors approved a first
quarter 2018 dividend of $0.26 per share. This represents a 1% increase
over the prior period and marks the twentieth year in a row of dividend
increases. Owens & Minor has paid dividends continuously since becoming
a public company in 1971. The dividend is payable on March 30, 2018, to
shareholders of record on March 15, 2018.

The company plans to release its fourth quarter and full year 2017
financial results on February 14, 2018, before the market opens. Company
executives will host a conference call, which will also be webcast, to
discuss the results that same morning on Wednesday, February 14, at 8:30
a.m. EST. Participants may access the call at 866-393-1604. The
international dial-in number is 224-357-2191. A replay of the call will
be available for one week by dialing 855-859-2056. The access code for
the conference call, international dial-in and replay is #4198177.
Webcast: A listen-only webcast
of the call, along with supplemental information, will be available on www.owens-minor.com
under "Investor Relations."

Safe Harbor

This release is intended to be disclosure through methods reasonably
designed to provide broad, non-exclusionary distribution to the public
in compliance with the SEC's Fair Disclosure Regulation. This release
contains certain "forward-looking" statements, which are made pursuant
to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. These statements include, but are not limited to,
statements related to the Company's expectations regarding the
performance of its business, its 2017 preliminary financial results, the
impact of tax reform legislation, the transformation of its business,
its liquidity and capital resources, the Company's ability to complete
the transaction with Halyard referenced herein and any projections of
earnings, revenues or other financial or operational items related to
the transaction or Halyard S&IP business following the closing of the
transaction, and other non-historical statements. Forward-looking
statements involve known and unknown risks and uncertainties that may
cause our actual results in future periods to differ materially from
those projected or contemplated in the forward-looking statements.
Investors should refer to our annual report on Form 10-K for the year
ended December 31, 2016, filed with the SEC and subsequent quarterly
reports on Form 10-Q and current reports on Form 8-K filed with or
furnished to the SEC, for a discussion of certain other known risk
factors that could cause our actual results to differ materially from
our current estimates. These filings are available at www.owens-minor.com. Given
these risks and uncertainties, we can give no assurance that any
forward-looking statements will, in fact, transpire and, therefore,
caution investors not to place undue reliance on them. We specifically
disclaim any obligation to update or revise any forward-looking
statements, whether as a result of new information, future developments
or otherwise.

Our financial statements for the year ended December 31, 2017, are not
finalized until they are filed in our Annual Report on Form 10-k for the
year ended December 31, 2017. We are required to consider all available
information through the finalization of our financial statements and the
possible impact of such information on our financial condition and
results of operations for the reporting period, including the impact of
such information on the complex and subjective judgments and estimates
we made in preparing certain of the preliminary information included in
this press release. Subsequent information or events may lead to
material differences between the preliminary results of operations
described in this press release and the results of operations that will
be described in our subsequent earnings release and between such
subsequent earnings release and the results of operations described in
our Annual Report on Form 10-k for the year ended December 31, 2017.
Those differences may be adverse. Readers should consider this
possibility in reviewing the earnings information in this press release.

Owens & Minor uses its web site, www.owens-minor.com,
as a channel of distribution for material company information, including
news releases, investor presentations and financial information. This
information is routinely posted and accessible under the Investor
Relations section.

Although the company does provide guidance for adjusted earnings per
share (which is a non-GAAP financial measure), it is not able to
forecast the most directly comparable measure calculated and presented
in accordance with GAAP. Certain elements of the composition of the GAAP
amounts are not predictable, making it impractical for the company to
forecast without unreasonable efforts. Such elements include, but are
not limited to restructuring and acquisition charges. As a result, no
GAAP guidance is provided. For the same reasons, the company is unable
to address the probable significance of the unavailable information,
which could have a potentially unpredictable, and potentially
significant, impact on its future GAAP financial results. The outlook is
based on certain assumptions that are subject to the risk factors
discussed in the company's filings with the Securities and Exchange
Commission (the "SEC").

Included is a reconciliation of the differences between the non-GAAP
financial measures presented in this news release and their most
directly comparable GAAP financial measures.

About Owens & Minor, Inc.

Owens & Minor, Inc. (NYSE: OMI) is a global healthcare solutions company
dedicated to Connecting the World of Medical Products to the Point of
CareSM by providing vital supply chain services to
healthcare providers and manufacturers of healthcare products. Owens &
Minor provides logistics services across the spectrum of medical
products from disposable medical supplies to devices and implants. With
logistics platforms strategically located in the United States and
Europe, Owens & Minor serves markets where three quarters of global
healthcare spending occurs. Owens & Minor's customers span the
healthcare market from independent hospitals to large integrated
healthcare networks, as well as group purchasing organizations,
healthcare products manufacturers, the federal government, and
healthcare patients at home through its Byram Healthcare subsidiary. A
FORTUNE 500 company, Owens & Minor is headquartered in Richmond,
Virginia, and has annualized revenues exceeding $9 billion. For more
information about Owens & Minor, visit owens-minor.com,
follow @Owens_Minor
on Twitter, and connect on LinkedIn at www.linkedin.com/company/owens-&-minor.

GAAP/Non-GAAP Reconciliation

The following table provides a reconciliation of estimated net income
per diluted common share to non-GAAP adjusted net income per diluted
share used by management:

Estimated range for the year ended December 31, 2017

Net income per diluted common share, as reported (GAAP)

$

1.17

$

1.20

Acquisition-related intangible amortization (1)

0.18

0.18

Acquisition-related and exit and realignment charges (2)

0.64

0.67

Other (3)

0.14

0.16

Tax reform impact (4)

(0.55

)

(0.60

)

Net income per diluted common share, adjusted (non-GAAP) (Adjusted
EPS)

$

1.58

$

1.61

Use of Non-GAAP Measures

Adjusted net income per diluted share is an alternative view of
performance used by management, and we believe that investors'
understanding of our performance is enhanced by disclosing this
performance measure. In general, the measure excludes items and charges
that (i) management does not believe reflect our core business and
relate more to strategic, multi-year corporate activities; or (ii)
relate to activities or actions that may have occurred over multiple or
in prior periods without predictable trends. Management uses this
non-GAAP financial measure internally to evaluate our performance,
evaluate the balance sheet, engage in financial and operational planning
and determine incentive compensation.

Management provides this non-GAAP financial measure to investors as a
supplemental metric to assist readers in assessing the effects of items
and events on our financial and operating results and in comparing our
performance to that of our competitors. However, the non-GAAP financial
measure used by us may be calculated differently from, and therefore may
not be comparable to, similarly titled measures used by other companies.

The non-GAAP financial measures disclosed by us should not be considered
a substitute for, or superior to, financial measures calculated in
accordance with GAAP, and the financial results calculated in accordance
with GAAP and reconciliations to those financial statements set forth
above should be carefully evaluated.

The following items have been excluded in our non-GAAP financial
measures:

(1) Acquisition-related intangible amortization includes
amortization of certain intangible assets established during purchase
accounting for business combinations. These amounts are highly dependent
on the size and frequency of acquisitions and are being excluded to
allow for a more consistent comparison with forecasted, current and
historical results and the results of our peers.

(2) Acquisition-related and exit and realignment charges
include transaction and transition costs associated with the acquisition
of Byram and the upcoming Halyard S&IP transaction and severance from
reduction in force and other employee costs associated with the
establishment of our new client engagement centers, and the write-down
of information system assets which are no longer used and other IT
restructuring charges.

(3) Includes software as a service (SaaS) implementation
costs associated with the upgrading of our global IT platforms in
connection with the redesign of our global information system strategy.

(4) Includes a recognized income tax benefit associated with
the estimated benefits under the Tax Cuts and Jobs Act.